LINEAR under investigation

BURSA Malaysia is investigating Linear Corp Bhd (9504) for possible breaches of listing requirements, the stock market regulator said yesterday.

In a statement to Business Times, Bursa Malaysia said that it will not hesitate to take the necessary actions against the company and the culpable directors if they find something amiss.

Linear shares have slumped to a six-month low yesterday to close at 22.5 sen, reeling from the after effects of the company's cash being passed to a company in Seychelles. Two weeks ago, Linear told the stock exchange that a company director had paid out almost all of its cash to a Seychelles company.

Linear paid RM36 million to the Seychelles company, Global Investment Group Inc (GIG) as a performance consideration to build a RM1.66 billion cooling tower in Manjung, Perak.
As at March 31 2009, Linear had RM37 milion in cash, according to its unaudited accounts.

Meanwhile, it is further believed that the Securities Commission is also probing the activities at Linear.

Linear chief operating officer Vincent Nelligen in an e-mail reply said that the matter should be addressed to its directors. The directors could not be reached for comments as at press time.

Linear had previously said the money was paid to GIG by a director of the company at the material time in an autocratic manner.

This year as many as three directors had quit the company, namely independent and non-executive director Datuk Thangarajo A. Subramaniam, non-independent and non-executive director Alan Rajendram and Singaporean non-executive director Eswaramoorthy Pillay Amuther.

Rajendram and his partner, Eswaramoorthy, had also sold a total of 14.37 million shares, or 19 per cent of the company, in April.


By June Ramlee